More than two-thirds of investment managers now use AI in front office

January 19, 2026

SimCorp, a global FinTech provider to the investment management industry, has revealed that a significant majority of buy-side firms are now actively using artificial intelligence to support front-office activities.

According to the company’s newly released 2026 InvestOps Report, 70% of buy-side firms are successfully employing AI within their front office. This represents a substantial increase compared to the same study last year, when only around 10% of respondents were actively exploring AI tools.

The findings are based on an annual global survey of 200 senior executives from asset managers, pension funds and insurance companies. Conducted by WBR Insights, the research set out to understand technology priorities and operational challenges facing investment managers as they move into 2026.

The study shows that AI adoption has moved beyond experimentation and pilot programmes, becoming business-critical for many firms. Consolidating technology vendors and platforms emerged as the most common technology initiative, cited by 58% of respondents, followed closely by modernising technology architecture and data infrastructure at 54%. Both initiatives were identified as essential foundations for scaling AI, automating workflows and simplifying complex technology environments.

For the first time in three years, innovation has overtaken operational efficiency as the leading driver of technology and operations investment. Achieving competitive differentiation through innovation was selected by 55% of respondents, compared with 44% prioritising cost control and 33% focusing on operational efficiency.

As AI use matures, firms are becoming more selective when choosing third-party solutions. Vendor stability ranked as the most important evaluation criterion at 57%, ahead of access to innovation, analytical flexibility and proven return on investment. Respondents highlighted the importance of strong data governance, cybersecurity and regulatory alignment, particularly as proprietary data is increasingly used to train and operate AI models.

The report also points to growing optimism around technology innovation in private markets and alternative investments. Over the past 12 months, the proportion of respondents who believe alternatives offer the greatest opportunity for innovation rose by 24 percentage points to 51%. AI, generative AI and advanced analytics were collectively ranked as the top innovation opportunity by 72% of executives.

SimCorp CEO Peter Sanderson said, “AI adoption has dramatically shifted from pilots to business-critical applications in the front office.

“The advancements in AI can deliver the most value for investment professionals to enhance decision-making and efficiency when it is underpinned by a centrally governed and unified data layer.”